ROOT 2Q25 earnings review
Served with a bit of Lemonade.
During 1Q25, Root continued to impress with a reacceleration of their revenue growth and a continuation of their record low loss ratios. The stock reacted favorably to that earnings release, but then consolidated in subsequent weeks, likely as investors were concerned about the insurance industry cycle turning sour. Management had sounded cautious in the earnings call to prepare investors for higher loss ratios going forward.
At the time of the earnings release, the stock was trading at around $140. After today’s earnings release, it’s trading at $130. Let’s check out the latest numbers in detail.